Energy costs are continuously rising in today’s economy. The market price for coal has risen 160 percent since June 2007. The demand for coal continues to rise in developing countries. The price for natural gas has risen as well.
These increases have caused Progress Energy, which used coal to fuel about half the electricity it generated in the Carolinas in 2007, to petition the North Carolina Utilities Commission to raise the fuel component rate for customers, which will in turn, affect the University.
By law, the company makes no profit on this component of its rates. Instead, its profits come from return on capital investment.
“Our incentive is to make power plants run as long and efficiently as possible,” Drew Elliot, a Corporate Communications employee of Progress Energy, said.
Progress Energy also sought to recover expenses incurred during research and development of energy-efficiency and renewable energy programs. If the changes are approved, the increases would mean an increase of about 16.2 percent for residential customers using 1000 kilowatt-hours. The fuel component of its rates has not changed since 2000. According to Progress Energy, the company will have around $300 million in unrecovered fuel expenses by the end of 2008. The base rate, the other major component of Progress Energy’s rates, has not increased since 1988. If the Utilities Commission approves the changes, the increases will take effect Dec. 1. Changes in price obviously affect customers like N.C. State, which receives its electricity from Progress Energy. University Housing built these kinds of increases into their budget, allowing for a four percent increase across the board. “Water is the wild card [in the budget] because Raleigh controls that and can raise rates at any time,” University Housing Associate Director Barry Olson said. Last year, Housing spent $100,000 on toilet upgrades alone. Facilities also installed new sink aerators and shower heads. Housing and the Office of Energy Management are working on the rise of energy prices as well. “We have to be pro-active, not only watching the rates but making sure our usage and billing donÕt increase,” Olson said. They have already installed fluorescent light bulbs where they can — in the ceiling fans in Wolf Village, for example. In the Bragaw renovation, they are using LED lighting. Both kinds of lighting have higher up-front costs but last longer and use less energy, according to Olson. Energy Management supplies Housing with the initial numbers for their budget and controls the distribution on campus. Energy Management can tweak NCSU’s systems to achieve the most efficient usage. The office has also started a “Switch it Off” campaign. “The one thing I recommend is just to be more diligent and make sure we’re shutting things down and reporting problems,” Olson said. Olson encouraged everyone — students and faculty — to report any problems, even things like a leaky faucet or lights that are on when they should not be. To report a specific problem, Housing has an online work order request. For more general issues, Olson recommended calling Housing directly. He said Housing could normally address problems within a day. “If you notice a problem, please let [Housing] know — or if you have recommendations,” Olson said. “Sometimes we canÕt do anything. Sometimes it will give us a chance to examine [the situation].” Other than reporting problems, Olson said to be aware of leaving lights on and be aware that things that are plugged in but do not look on — like phone chargers — use electricity. He recommended buying appliances with the Energy Star marking and using the Energy Star features on things like computers. According to Progress Energy, customers can save up to 20 percent on their energy costs. It recommends things like cleaning air filters or adjusting the thermostat on air conditioners. “The University does a pretty good job,” Olson said. “We’re always working on this. We always need to focus on conservation. With subtle changes, we can make a big difference.”
To report problems to University Housing, fill out a work order online at www.ncsu.edu/housing or call 919-515-3040. For more than 100 energy-efficiency tips, visit www.savethewatts.com
